1)Discuss the following terms with respect to Option and Option Valuation i) Intrinsic Value ii) Adjusted Intrinsic Value iii) Time Value of an option iv) American Option v) European Option

2)Use the Black-Scholes Option Pricing Model for the following problem. Given: SO = $70; X = $70; T = 70 days; r = 0.02 annually (0.0000547 daily); = 0.01 (daily). No dividends will be paid before option expires. Calculate the value of the call option.